Adelaide-based glass maker ACI will cut 60 jobs at its Adelaide plant because of slowing demand from the wine export industry.
The ABC reports that the company will continue to operate with a staff of about 150 workers. Employees from all areas of the business will be offered voluntary redundancies.
According to parent company O-I Australia, the plant will change from double furnace operation to a single furnace from next week.
Joseph Kane from the Australian Workers Union told the ABC the future of the company is in doubt because it may not be sustainable with just a single furnace.
He noted that the business cut 50 jobs about 18 months ago and that it used to operate three furnaces.
"If you take a three-tank operation and turn it into a one-tank operation at a very large plant like that, how can it be sustainable going into the future? I have grave concerns for the employees who are left at the plant," he added.
The plight of ACI reflects tough times for the wine makers which use its glass. According to Winemakers’ Federation of Australia figures, from 2007 to 2012 the value of Australian wine exports fell by $1.3 billion.